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October 8, 2024

The Future of Ad Tech: Personalization, AI, and Virtual Experiences

The Future of Ad Tech: Personalization, AI, and Virtual Experiences

In recent years, advertising technology (ad tech) has rapidly evolved, driven by advances in artificial intelligence, virtual reality, and data analytics. As we look to the future, several key trends are poised to reshape how brands engage with consumers across digital platforms. Let's explore some of the innovative ad tech concepts on the horizon:

Hyper-Personalized Ad Creatives

One of the most promising developments is using AI to generate highly personalized ad creatives. For example, a pet food brand could analyze a user's social media posts to determine if they own a cat, dog, or bird. The AI could then dynamically generate an ad featuring that specific type of pet, making the content much more relevant and engaging for each viewer.

This level of personalization goes beyond just swapping out images. The entire ad creative could be dynamically generated based on user data and preferences, including text, layout, and even video content. The result is a true one-to-one advertising experience at scale.

AI-Powered Influencer Marketing

Another intriguing concept is using AI to turn everyday social media users into micro-influencers. An AI system could automatically generate influencer-style content promoting relevant products by analyzing a user's posts, photos, and engagement patterns. This content would mimic the user's authentic voice and style while reaching their network of followers.

While this raises questions about disclosure and authenticity, it could dramatically expand opportunities for word-of-mouth marketing. Brands can tap into niche communities and interests more effectively than working with traditional influencers.

Interactive TV Ads

As more viewing shifts to connected TVs and streaming platforms, new possibilities are emerging for interactive advertising experiences. Voice-activated TV ads allow viewers to request more information about a product in more naturally conversational ways. The ad reacts by providing the answer. The viewer can ask, "I want to buy this," and a sale process can automatically occur. No need to scan anything or even use another device.

Ad content could also be dynamically extended or personalized based on viewer engagement. If someone expresses interest in learning more about an advertised car, the ad break could be reshuffled to provide additional details tailored to that viewer.

Virtual and Augmented Reality Advertising, Dynamic Product Placement

VR and AR technologies are opening up entirely new advertising formats and placements. In virtual stores, product displays could dynamically update based on a shopper's interests and past purchases. AR apps could overlay personalized promotions onto real-world objects as users move through a store.

There's also potential for more seamless product placement in VR/AR entertainment experiences. Virtual objects like branded beverages could be dynamically inserted into 3D movie scenes or game environments based on viewer preferences. In addition, beyond AR and VR, in a video program rendered live in 3D (stay tuned), there is an opportunity to select what product to insert based on the audience dynamically.

Reducing Polarization

Beyond traditional advertising goals, some researchers are exploring how AI could be used to reduce polarization in social media discourse. These systems aim to expose users to a wider range of viewpoints by automatically generating counterpoints or alternative perspectives on divisive posts.

While controversial, such technology highlights how ad tech innovations may shape broader social dynamics and information flows online.

The Road Ahead

As these emerging technologies continue developing, advertisers must carefully balance personalization with privacy concerns. Maintaining transparency and user control will be crucial for building trust. There are also important ethical considerations around disclosure and authenticity, particularly for AI-generated content.

However, these innovations can create more relevant, engaging, and seamless advertising experiences across digital platforms if implemented thoughtfully. The future of ad tech will likely be more personalized, interactive, and immersive than ever.

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Jean-Yves Couleaud

Senior Director of Advanced R&D

Jean-Yves Couleaud is Senior Director of Advanced R&D at Adeia. His role is to develop new ideas to enrich Adeia’s media portfolio in the video streaming, connectivity, advertisement, and imaging domains. Prior to joining Adeia, Jean-Yves spent more than 25 years in the aerospace industry where he held various engineering positions. He was the technical lead of a team that brought programmatic advertisement to commercial jets’ in-flight entertainment systems as an industry-first and was the Chief Engineer for a cloud-native edge server architecture that was recently awarded a prestigious Crystal Cabin Award. He holds 14 granted patents.